Compare £10,000 Unsecured Loans

What types of loan could offer me £10,000?

Whether you’re looking for a £10,000 loan, or want to borrow more or less, most loans fall into one of two camps:

An unsecured loan

Often also referred to as a personal loan, an unsecured loan allows you to borrow without needing to use something that you own as collateral against the loan. It will usually be the quickest way to arrange a £10,000 loan, and you don’t need to be a homeowner or own anything of value to take one out. However, generally you can expect to pay a higher interest rate than if you took out the alternative of a secured loan, and your credit score will be a more important consideration to the lender too.

A secured loan

With a secured loan, you will need to put something you own up as security to get the loan, such as your home. As lenders consider they are taking on less risk, secured loans tend to have comparatively lower rates of interest and allow you to borrow more than with an unsecured loan. Having a bad credit score is less likely to pose a problem if you want a secured £10k loan too. However, your property or asset used as security for the loan is at direct risk if you don’t make your repayments when you should.

» COMPARE: Secured loans

How does an unsecured loan for £10,000 work?

When you take out a £10,000 unsecured loan, you’ll be committing to repay the £10,000 loan plus interest over a set period of time. The repayments you must make each month are usually fixed and will have been worked out so that your loan and the interest due is completely cleared by the end of the loan term, as long as you keep up your repayments.

Can I get an unsecured £10,000 loan?

Successfully getting a £10,000 personal loan will depend on you being able to prove to the lender that you’ll be able to repay the loan. This means your chances of being accepted for a £10,000 unsecured loan will usually improve if you are employed and have a good credit rating. Making sure you’re on the electoral register will also allow a lender to quickly verify your identity and move your application forward.

What credit score do you need for an unsecured £10,000 loan?

A good credit score should make it easier to find an affordable interest rate from a wide variety of lenders that offer unsecured £10,000 loans. This is because a decent credit rating shows that you can usually be relied upon to look after your finances and repay your debts.

Can I get a £10,000 unsecured loan with a bad credit rating?

A bad credit rating can hamper your ability to borrow, as you may be considered too risky a proposition by some loan providers. However, bad credit loans could still remain an option, along with a secured loan where your credit score usually prove less important.

» COMPARE: Bad credit loans

Who can lend me a £10,000 unsecured loan?

If you want an unsecured £10,000 loan in the UK, your options could include the major high street banks and building societies and the newer challenger banks. Another option that you may wish to consider are peer-to-peer lenders.

How long is the repayment period for an unsecured loan for £10,000 typically?

Most £10,000 loans can be repaid over a term of between one and seven years, but some lenders may offer longer terms. The repayment terms available will depend on the loan amount, the lender and its affordability calculations.

How much would monthly payments be on a £10,000 unsecured loan?

The monthly payments you can expect to make on a £10,000 loan will be determined by the APR and the term of your loan. APR is short for annual percentage rate, and takes into account the interest rate of your loan and any additional fees that may be charged.

Choosing a longer term results in lower monthly payments, but will also mean paying a higher amount of interest in total, as the table below illustrates:

Loan	Term	APR	Monthly repayment	Total repaid	Cost of borrowing
£10,000	3 years	3%	£290.81	£10,469.24	£469.24
£10,000	5 years	3%	£179.69	£10,781.21	£781.21
£10,000	3 years	8%	£313.36	£11,281.09	£1,281.09
£10,000	5 years	8%	£202.76	£12,165.84	£2,165.84

» MORE: Calculate your monthly loan repayments

How much would an unsecured loan for £10,000 cost in fees and interest?

This will depend on the APR and the period over which you’ll repay the £10k loan. The higher the APR, the more expensive a loan is. Opting for a shorter-term loan should keep your overall costs lower than with a longer-term loan, but the monthly repayments will be higher.

What are the pros of opting for an unsecured £10,000 loan?

The advantages of an unsecured £10,000 loan can include:

• You don’t need to put anything forward as collateral or own a home.
• The application process is usually faster than for a secured loan.
• Your monthly repayment amount is usually fixed.
• You usually get to choose your repayment period.
• There may be the option to take a payment holiday.

What are the cons of opting for an unsecured £10,000 loan?

The potential disadvantages of a £10,000 unsecured loan include:

• You may find it more difficult to get a loan with a bad credit score, and if you do get one the interest rate is likely to be higher.
• As you don’t provide collateral, interest rates are usually higher on an unsecured £10k loan than on a secured loan.
• There may be an early repayment fee if you want to pay your loan back before the end of the loan term.

How to get a £10k unsecured loan

To get any unsecured loan, a lender will want to see proof of your identity, by checking your passport or driver’s licence, and proof of your address, via perhaps a recent utility bill with your address on it.

Depending on your chosen lender, it may be possible to apply for a £10k loan in branch, online, by post or phone.

A lender will always conduct a credit check to help it reach a decision on your application. Making sure your credit score is as good as it can be is therefore a must. You will also usually need to supply details of your employment as part of the decision-making process, and then your bank details if you qualify for the loan.

» MORE: How to arrange a personal loan

How soon could I get the £10,000 loan payout?

Approvals can sometimes take a matter of seconds once you’ve answered all the questions asked, particularly if you apply online. If you’re successful in your application for a £10k loan, some lenders may be able to pay the money into your account on the same day. Others often promise the day following approval for the funds to arrive.

How to choose the best unsecured £10,000 loan for me?

Finding the best £10,000 loan for you is key, and where our comparison table comes into play.

The various lenders can be sorted according to what is most important to you. Once sorted, the table still shows all of the criteria for each lender, and a representative example to give you an idea of the monthly repayments and total cost involved for each loan at a certain scenario. The eligibility criteria for each loan can be seen by clicking ‘More info’, or you can quickly check your eligibility by clicking the appropriate button.

What are the alternatives to consider?

If an unsecured loan is not what you are looking for or out of your reach, a secured £10k loan is one alternative to consider. You will need to provide a valuable asset you own as security, typically your home, but this usually makes the interest rates more favourable. The downside includes your property being at risk if you fail to make the necessary repayments.

£10,000 Unsecured Loans FAQs